GeoPark Holdings Limited, the Latin American oil and gas exploration and production company with producing properties in Chile and Argentina, reported that its pre-close operations and trading update. The final Preliminary results for the year ended 31 December 2007 are expected to be released in April 2008.
Oil and Gas Production Increase: Despite a 6 month delay in the start-up of the drilling program due to the late arrival of the drilling rig, oil and gas production in Chile and Argentina increased by 56% from approximately 1,470 barrels of oil per day equivalent (boepd) in January 2007 to approximately 2,300 boepd at the end of December 2007. (This production rate represents approximately a seven fold increase since the time of GEOPARK's IPO in May 2006.) Further expected production increases were delayed by the late arrival of the hydraulic fracture service equipment into Chile required to stimulate four wells (two new wells and two existing wells). This equipment is now on-site and beginning operations with results expected during the Q1 2008. A mechanical drilling problem in a new well also postponed expected production from this well into the Q1 2008.
Total Revenues Up: Oil and gas production revenue increased by approximately 86% from US$6.0 million in 2006 to approximately US$11.2 million in 2007. GEOPARK benefited from stronger oil and gas commodity prices resulting from contract renegotiations (see below), however, total revenues were impacted by above-mentioned production delays.
New Oil and Gas Fields on Production: During 2007, GEOPARK added production from five new gas fields in Chile (San Miguel, Dicky, Dicky Oeste, Kimiri Aike and Kimiri Aike Norte) in 2007 and now has twelve producing oil and gas fields in Argentina and Chile. DeGolyer & MacNaughton, the independent petroleum engineering firm, is currently performing a new assessment of GEOPARK's oil and gas reserves, with an expected report completion date in Q2 2008.
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